RBI’s Latest Announcements: How New Rules Will Impact Banks and Account Holders

by Jobuza Team | Oct 28, 2025 | BLOG, Trending News

RBI’s Latest Announcements: The Reserve Bank of India (RBI) has announced a series of major updates that will reshape the country’s banking landscape. These reforms aim to make banking more inclusive, flexible, and customer-friendly for both businesses and individuals.

RBI to Resume Licensing of Urban Co-operative Banks

After almost two decades, the RBI is set to reopen the process of granting licenses to urban co-operative banks (UCBs). This move comes nearly 20 years after the process was paused in 2004. The decision will allow new co-operative banks to open, particularly in smaller towns and semi-urban areas, improving access to formal banking services for underserved communities. A consultation paper on this process is expected soon.

Greater Flexibility for Current and Overdraft Accounts

The RBI has introduced more flexibility for banks in managing current and overdraft (OD) accounts. This update will particularly benefit businesses, shopkeepers, and traders who rely on these accounts for daily transactions and cash flow. By easing restrictions, the central bank aims to support smoother financial operations and promote ease of doing business across sectors.

Repo Rate Remains Unchanged, GDP Forecast Raised

In its latest monetary policy review, the RBI decided to keep the repo rate steady at 5.50%. At the same time, it raised India’s GDP growth forecast for FY26 to 6.8%. The move signals confidence in India’s economic outlook while maintaining stability in borrowing costs.

Extended Timeframe for Export Payments

Exporters have received a major relief from the RBI. The central bank has extended the deadline for bringing export proceeds back to India from one month to three months. This change gives exporters more time and flexibility to manage international payments and settlements, reducing pressure on businesses involved in global trade.

Simplified Rules for Foreign Borrowing

RBI is also simplifying regulations related to External Commercial Borrowing (ECB) under the Foreign Exchange Management Act (FEMA). These loans, which Indian companies raise from international markets, will now come under a more practical and flexible framework. This move is expected to help companies access global capital more efficiently in a dynamic economic environment.

Stronger Complaint System for Rural Customers

In a major step toward inclusive banking, the RBI has expanded the Ombudsman Scheme to cover customers of rural co-operative banks. This means that people in villages and remote areas will now be able to register complaints and seek redressal for poor banking services under the same framework as urban customers.

A Step Toward Modern and Inclusive Banking

The RBI’s latest announcements mark a strong push toward modernizing India’s banking system. By balancing growth, flexibility, and protection for customers, these reforms ensure that both urban and rural India benefit equally. The changes reflect the central bank’s commitment to building a more transparent, efficient, and accessible financial ecosystem for all.

New UPI Payment Rules Effective From November 3: Key Changes Explained

by Jobuza Team | Oct 6, 2025 | BLOG, Trending News

New Delhi: From November 3, 2025, the National Payments Corporation of India (NPCI) will roll out new rules for UPI settlements. The move comes as digital payments continue to rise across India, and the changes are aimed at making the system more efficient, transparent, and user-friendly.

Current UPI Settlement System

Right now, UPI transactions are cleared through 10 daily RTGS settlement cycles. These cycles include both successful transactions (authorised payments) and disputed ones (failed or challenged). Since both are settled together, it sometimes leads to delays and confusion.

What Will Change From November 3

NPCI is introducing a revised structure to handle transactions more effectively. The three major changes are:

1. Only authorised transactions in first 10 cycles: From cycle 1 to 10, only successful payments will be processed. Disputed transactions will be excluded.

2. Separate cycles for disputes: Two new cycles—cycle 11 and cycle 12—will be dedicated entirely to dispute settlements. This ensures disputes are handled independently without slowing down regular transactions.

3. New identifiers for disputes: NPCI will introduce DC1 and DC2 identifiers (DC = Dispute Cycle) in the file naming system. This will help banks and payment partners easily recognise dispute-related settlements.

No Change in Settlement Timings

It’s important to note that there will be no change in cut-over timings, RTGS posting schedule, reconciliation reports, or GST reports. The main difference lies only in how authorised and disputed settlements are separated for better efficiency.

Update on Paytm UPI Autopay

In addition to these changes, NPCI has extended the deadline for closing old @paytm UPI ID Autopay mandates. Initially, the cut-off was earlier, but now users and merchants have time until October 31, 2025 to complete the transition.

What It Means for UPI Users

With these updates, users can expect faster settlements, fewer delays, and quicker dispute resolution. As UPI continues to be the backbone of India’s digital payment ecosystem, these rule changes are another step towards improving security, reliability, and overall user experience.

UPI Transaction Limit Increased: Know the New 24-Hour Cap

by Jobuza Team | Sep 15, 2025 | BLOG, Trending News

UPI Transaction Limit Increased: Now Pay Up to ₹10 Lakh in a Day

The National Payments Corporation of India (NPCI) has made a major change in UPI rules. From September 15, 2025, the daily UPI transaction limit has been increased to ₹10 lakh for selected categories. This update comes as UPI continues to dominate online payments across India.

Current UPI Limit vs New Limit

Usually, the UPI limit is ₹1 lakh per day for most transactions. But with the new update, NPCI has allowed higher limits for payments like taxes, insurance, EMIs, investments, and more.

• New Rule: For certain transactions, you can now transfer up to ₹5 lakh in a single transaction and ₹10 lakh in 24 hours.

Why Did NPCI Increase the UPI Limit?

The last date for paying income tax is September 15, 2025. Many taxpayers and businesses found the old UPI limit too low for large payments. To make the process easier, NPCI raised the limit on tax-related transactions. This change will also help professionals, businesses, and regular users who want to make big payments via UPI.

Transactions Covered Under the New Limit

The revised limit applies only to P2M (Person to Merchant) transactions. This means you can use the higher limit when paying verified merchants like insurance companies, stock brokers, tax portals, and banks.

However, for P2P (Person to Person) transfers, the limit will remain ₹1 lakh per day.

Here’s a breakdown of the new UPI limits:

1. Tax Payment (MCC 9311)

• ₹5 lakh per transaction

• ₹10 lakh per 24 hours

2. Insurance and Capital Market

• Earlier: ₹2 lakh

• Now: ₹5 lakh per transaction and ₹10 lakh daily

3. Loan EMI and B2B Collections

• ₹5 lakh per transaction

• ₹10 lakh per day

4. Credit Card Bill Payment

• Earlier: ₹2 lakh

• Now: ₹5 lakh per transaction

• Daily limit: ₹6 lakh

5. Foreign Exchange (FX Retail)

• ₹5 lakh per transaction

6. Digital Accounts and Fixed Deposits (FDs)

• Up to ₹5 lakh per transaction

Will All Banks Implement the New Limit?

NPCI has instructed all banks, apps, and payment service providers to apply these changes. However, individual banks can set their own internal limits. This means that while most banks will start implementing the new rules from September 15, 2025, some may take more time.

What About IPO Payments?

For IPO applications made through UPI, the transaction limit will remain ₹5 lakh per application. The increased ₹10 lakh daily limit will not apply in this case.

Who Will Benefit the Most?

This change will directly benefit:

• Business owners and professionals making high-value tax or insurance payments

• Investors making stock market transactions

• Customers paying large EMIs, credit card bills, or deposits through UPI

By removing the old restrictions, NPCI has made UPI more convenient for both businesses and individuals.